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Risks and Rewards of bitcoin। Before investing in bitcoin read the Article।

       The article describes the risks and rewards of bitcoins. Let's start with rewards:

1)     Stocks and commodity have the futures. Thus bitcoin's futures had been launched in the end of 2017 by CME or Chicago Mercentile Exchange,world's largest futures exchange. 


2)      Bitcoins are legalised in japan. The famous e-commerce company of japan,Rakuten and other some sites except bitcoins in transaction. 


3)     The number of bitcoins is limited. Supply rate of bitcoins is gradually reducing. About in every four year the number of bitcoins as a reward is become half for the bitcoin miners to mine a block. As we know the bitcoins that are available in bitcoin system are brought by bitcoin miners. It means without miners new coins can not be add in system. Total 21 million or 2 crore 10 lakh bitcoins will be issued. And about in 2140 a.c. new bitcoins will not come in bitcoin market. The importance of bitcoins is increasing because of the limited number of bitcoins.  


4)       As in 'Bitcoin price and working process' article it is described that block chain technology is used in bitcoin system. Block chain system is a really a good and revolutionary technique. Block chain is a public laser that have the all transactions of every bitcoins. And without a mediator it is maintained and kept secure. In future you can obviously see the block chain system in banking and other sectors. Bitcoin system uses different revolutionary technology like block chain,cryptography,digital signature etc. This is the plus point of bitcoins to secure itself. 


5)       The name of bitcoins sender and receiver are stayed anonymous in any bitcoin transactions. As a result the privacy of users is done secured. It have also risks that is covered in this post. Let's read about the risks of bitcoin investing:


A)        If you loose the private key and backup mail of your wallet then it is impossible to get back your bitcoins. According to Fortune Magagine 17 to 23% of bitcoins that was available in bitcoin market was lost by bitcoin user in november,2017. You can loose your bitcoin if your bitcoin wallet provider or bitcoin exchange do any mistake. RBI alerts all the investors saying that RBI does not give any license or authority to any bitcoin wallet provider or bitcoin exchange in india. RBI told investors to aware of investing in bitcoins. 


B)      Stock market is regulated by SEBI, banking system is regulated by RBI. But bitcoin system is not regulated by any authority. So if bitcoin wallet provider or bitcoin exchange do mistake or anyone tries to manipulate bitcoin then as a result investors can be loose and any authority can not help them. 


C)      There is a chance of money laundering because of anonymous name of user in transactions. If bitcoin is used in illegal activities and terrorism then govermemt can bring rules and regulations on bitcoin.


D)     The bitcoin price fluctuates heavily. According to a journal bitcoin is 7.5 X more volatile than gold and 8X more volatile than US stock index.


E)     Bitcoin is stopped in China. ICO or intial coin offering is also bannned in china. South korea banned ico. Vietnam also banned bitcoins. Indian goverment doed not bring any rules and regulations on bitcoin and other cryptocurrency. And if any other cryptocurrency  is brought in market with superior technology then it will be a long term threat for bitcoin.

Now a look of the opinion of famous businessmen:


Positive comments:


* Bill Gates,founder of Microsoft:

        "Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency in that you do not have to be physically in the same place and of course,for large transactions currency can get pretty inconveninent."


* Eric Schmidt,executive chairman of Alphabet inc.:

        "Bitcoin is a remarkable cryptographic achievement. The ability to create something which is not duplicable in the digital world has enormous value."


* James Gorman,ceo of Morgan Stanley:

          "Bitcoin is certainly something more than just a fad....The concept of anonymous currency is a very interesting concept--interesting for the privacy protection it gives people. Interesting because what it says to the central-banking system about controlling that."


* Steve Wozniak,co-founder of Apple inc.:

        "Bitcoin is better than gold and US dollar. Bitcoin is more stable and less prone to arbitrary supply changes."


Negative comments:


* Warren Buffet,founder of Berkshire Hathaway: 

        "people get excited from big price movements, and wall street accommodates... You can't value bitcoin because it's not a value producing asset. It's a 'real bubble'."


* Jack Bogle,founder of vanguard group:   

          "You know bonds have an interest coupon,stocks have earnings and dividend but bitcoin has nothing. There is nothing to support bircoin except the hope that you sell it to someone for more than you paid for it. Bitcoin may well go to 20000 dollars but that wouldn't prove i'm wrong. When it gets back to 100 dollar,we'll talk."


* Jamie Dimon,ceo of JP Morgan

          " it's a fraud. If a JP morgan trader began trading in bitcoin then i'd fire them in a second. For two reasons: it's against our rules and they are stupid. And both are dangerous."


          If you have any query related to bitcoin's risks and rewards  please comment below so that the topic can be covered.


Best wishes to invest.


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